What is Google Marketing Cost? | Google Advertising Cost Guidance

by | Oct 16, 2023 | GMB

Google marketing cost

App: The mobile- Google marketing helps businesses survive in the market. The business can attain the utmost success with help of Google marketing. The business can plan, execute and measure the success of advertisements. If you are a newcomer to paid search and you may have an important question, how much do Google ads cost? Can we afford it? Well, it depends on the costs per click. It also depends on your business goals and needs.

Confused, don’t worry. Here is a complete guide on Google marketing costs. You can plan a realistic budget with the help of tips and tricks.

Factors that Affect the Cost of Google Marketing

How much does Google ad cost? There is no simple answer. Google marketing costs depends on the types of Google ad campaign, industry, customer experience, current trends, customer’s geographic location, and how you handle your account.

Type of Google Marketing Campaign

Google ads show up in the Google search network and Google display network. Google search ads are typically text-based whereas Google display ads are visual, you can typically see them on Gmail, YouTube, etc. Based on where they appear, there are different campaign types-

  • Search: Text ads on the SERP
  • Display: The ads you find on the website
  • Video: The video ads you find on YouTube and other streaming platforms
  • Shopping: On specific ads you find on different channels
  • Local: The ads that bring traffic to a specific location

How much Google charges depend on the budget and bid.  The quality score is calculated based on the ad’s relevance, landing page, and performance and generates Ad rank. This will depend on the ad’s placement and the ad’s cost per click.

Industry and Competition

Industry plays a major role in Google ads pricing. A business domain like retail, medical, stocks, etc has a vital influence and are very competitive domain, generating more cost per click. The main reason is professional competency. One new client could yield upwards of $1,000 – $10,000 depending on your business, so a CPC of $50 is a small price to pay for that client. Business domains like art, sports, and entertainment generate low CPC. The trait is to generate $1000- $10000 they need to reach more customers.

Target Audience and Geographical Location

Business houses are expanding across the globe, hence multiple locations are involved. The beneficial factor is customers across the globe are involved with different search intentions.  This is the key reason behind location being the key factor to decide the cost of Google ads. The average CPC depends on geographic location.  A survey was conducted in 97 countries and it revealed that United Arab Emirates scored the highest CPC in the world with an average of 1$ to 2$.

The cost of Google ads depends on your audience as well. Their frequent visit, their wish to download content, and their participation in webinars affect the cost of Google ads.

Google marketing cost

Budget and Bid Strategy

Google marketing cost in India
What is Google Marketing Cost? | Google Advertising Cost Guidance 3

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While choosing the ads, keep in mind your budget and focus on your goals and objectives. On Google, there are 8 types of automated or smart bidding strategies. Each of these strategies has different goals and has a great impact on the cost of Google ads in different ways.

  • Smart Bidding: The bidding process, increasing and decreasing bids are automated by Google using machine learning to achieve the following outcomes-
  • To maximize conversation to enhance CPC (cost per click)
  • To achieve target CPA (cost per action)
  • To achieve target ROAS (return on ad spend figure)
  • To enhance the number of conversations
  • Maximize clicks: Google focuses on sending a lot of people to the site and charges you more as an outcome.
  • Increased cost per click: Manual bids are automatically adjusted by Google to enhance more conversations keeping the same cost per click. By paying more per bid, you will maintain consistency in ROI.
  • Enhance conversations: Google will give a chance to increase the number of conversations, to get a higher CPC.
  • Target cost per acquisition: If you chose CPA, Google will focus on getting as many conversations as possible. This will help you to control your ad spend.
  • Return on ad spends: You will choose the income you want to generate and Google will help you to generate it by adjusting the bid automatically. This will control your ROI.
  • Location of the search page: To appear in the top position on Google, your bids are adjusted by Google. This will cost you more.
  • Outranking share: You can choose one more advertising site to outrank. To achieve this, Google will adjust your bids.

Cost of Different Google Marketing Platforms

The cost of different Google marketing platforms depends on various factors like location, Industry, customer lifecycle, etc.

Google Ads

Google ads promote your business better by generating more income. Google ad’s cost depends on CPC (costs per click). The CPC in the search network average between 1$ to 2 $. On the Google display network, CPC averages up to 1$.

The cost of Google ads depends on the industry.

  1. Insurance – $54.91
  2. Loans – $44.28
  3. Mortgage – $47.12
  4. Attorney – $47.07
  5. Credit – $36.06
  6. Lawyer – $42.51
  7. Donate – $42.02
  8. Degree – $40.61
  9. Hosting – $31.91
  10. Claim – $45.51
  11. Conference call – $42.05
  12. Trading – $33.19
  13. Software – $35.29
  14. Recovery – $42.03
  15. Transfer – $29.86
  16. Gas/Electricity – $54.62
  17. Classes – $35.04
  18. Rehab – $33.59
  19. Treatment – $37.18
  20. Cord blood – $27.80

Google marketing cost

Google Marketing Platforms

Google marketing platform is a package of various enterprise-level products like Google Optimize 360, Google Display and Video 360 (DV360), Google Search Ads 360 (SA360), Google Attribution 360, Google Surveys 360, Google analytics 360, Google data studio, etc.

The cost of these platforms is not available externally. You have to contact Google partners to understand the price of these platforms. Here are the key factors which influence the cost of Google marketing platforms-

  • The geographic location where your company is located and operating
  • Monthly hit volume
  • The platform from where you wish to purchase either directly from Google or Google marketing sales partner
  • Whether or not your company will be using the entire suite or selecting specific products

Estimating the Cost of a Google Marketing Campaign

Google marketing campaign costs primarily depend on CPC and CPM

Understanding Cost-Per-Click (CPC) and Cost-Per-Impression (CPM)

CPC stands for cost per click; you will decide the amount to be generated every time user clicks the ad. For instance, if you were paying 0.30$ per ad, and your ad is clicked 1000 times then you would be paid 300$. If less number of people click on the ad, then the amount generated would be less. CPC is designed for the search network. CPC helps you to generate traffic to your website and the amount generated. It offers two types of bidding:

  1. Automatic Bidding: In this process, you set a daily budget and Google will bring as many clicks as you set for your budget. You can also set a maximum cost per click to make sure Google doesn’t spend more than you would. You will have more control over what you spend per click in this model.
  2. Manual Bidding: When a user clicks on the ad, then only you will pay. Here you can control maximum bids. You can set bids at the Ad Group level, keyword level, or placement level

CPM is abbreviated as Cost per mile, a mile is referred to as 1000 impressions. In this, you pay a set amount for a network to serve up your ad 1,000 times. Here users clicking on your ad doesn’t affect the amount generated. The amount depends on how many people see your ad.  This is beneficial for the display network. CPM is the best option if your goal is to enhance the brand value. CPM bids are judged based on bids, but a potential downside is you may without even ads getting clicked.

Google marketing cost

Creating a Budget and Bid Strategy

In a budget plan, a budget bit strategy is created. Here is how you can set up a budget bid strategy.

  • Start creating a budget plan
  • On the “Explore target spend and apply a budget bid strategy” page, select the Budget bid strategy checkbox.
  • Click on continue
  • Now, you can see the “Budget automation” page.
  • Please note:
  • Budget bid strategy name”, “Campaign daily budgets”, and “Keywords and other biddable items” are not editable
  • After the budget group, the budget bit strategy is named with the Greek letter Δ added at the end
  • The “Campaign daily budgets” and “Keywords and other biddable items” checkboxes are selected because a budget strategy must manage the budgets and bids to optimize spend.
  • To select a conversation or set a revenue goal, toggle the checkbox of the following aspects:
  • Device bid adjustments
  • Remarketing target bid adjustments
  • Location target bid adjustments

We recommend you keep the default constraint setting as changing can affect the bidding strategy

  • To view the pacing and allocation step, click on continue.

Maximizing Your Return on Investment in Google Marketing

Google marketing focuses on reaching large customers and uplifting brand value. The success of Google marketing is consistency, to achieve it you need to improve your strategy. Here are a few steps to achieve your goal.

Google marketing cost

 Measuring and Analyzing Campaign Performance

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What is Google Marketing Cost? | Google Advertising Cost Guidance 4

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To enhance performance, analyzing your campaign performance plays a vital role. Here are a few strategies-

  1. Analyzing your existing strategy: If you review your performance history, you can understand what went well and what needs to be improved. You can achieve it by asking a few questions-
  2. What was the purpose of your campaign? Were you able to achieve it?
  3. What are the factors that we use to measure the strengths and weaknesses of the campaign?
  4. Was your choice of the channel the best?
  5. Who is your audience?
  6. What was the impact of a marketing campaign?

Collect these data and evaluate the performance. Before changing the strategy, remember to create a hypothesis twice or thrice and then conduct testing.

  • Set your goal: Once you start analyzing your strategy, think about whether you need to make changes to your objectives. Should you focus on improving customer range? Would you like to focus on engaging customers? How to build your brand value? While determining the objective, choose the activities that help you to achieve your goals.
  • Choose relevant metrics and APIs: once you set your goals, find the relevant metrics and APIs.  Here are a few APIs to analyze your campaign-
  • Clicks- How many clicks do you get on your ads?
  • Sales- How many leads are converted into sales?
  • Impressions- How many users have visited your ads?

To improve performance, your APIs are basic; you have to choose the best metrics-

  • ROMI- Return of marketing impact is the determinant of market success. With this, you can determine financial stakeholders and budgets.
  • Churn rate- This will determine when people leave sales and why.

Optimizing Campaigns for Better Performance and Lower Costs

Optimizing campaigns is taking necessary steps to improve your marketing performance at lower costs. Here are a few optimization hacks-

  • Creating multiple ad campaigns: Customers can easily interact with the brand on different platforms hence they can start on one platform and continue with another. To enhance the sale, create multiple ad campaigns. The incorporation of different distributions and channels into a single, customized for clients is called a multiple ad campaign. This will fetch certain benefits in your basket like-
  • By creating multiple channels, you can save time and money
  • Customers can enjoy streaming less experience when they navigate to different channels
  • You can reach a large audience
  • Track campaigns and make real-time adjustments: To track and measure your strategy performance, you need to get some real-time insights. You can do so by-
  • Performance of keywords: Finding the right keyword is important for successful ad campaigns. Track whether your keywords are fetching traffic, if not then change them.
  • The behavior of the audience: Track whether your ads are engaging with customers, you can use tools like Crazy Egg.
  • Media and content your audience can relate to Track whether your media and content are engaging the audience or not using A/B testing.
  • Channel attribution: Analyze how each channel is performing, driving traffic. This can help you to add a resource, you can use tools like Adobe Analytics and Google attributes.
  • Customize ad strategy for users: If you wish to succeed in your business, then you have to focus on customers. The buyer’s journey is defined in 3 stages-
  • Awareness
  • Consideration
  • Decision

Developing a data-driven Google marketing strategy

A successful data-driven marketing strategy relies on real-time insights to ensure you’re working from the most accurate information. Imagine if your customers purchased something last week, and you got information about the product page they visited a week before now, then the messages you are sending to your clients are not aligning with the current trends. To pitch clients at the right moment you need real-time data.

You can achieve this by below steps-

  • Gathering data about your customers
  • Analyzing data and trends pattern
  • Segregate your target audience into different bunches
  • Creating different ad campaigns for each group


Google marketing is one of the effective strategies to succeed in your business. Creating a successful budget plan helps you to analyze your business needs and you can achieve it by understanding the cost of ads. The cost of Google Ads for a business will depend on its industry, customer lifecycle, and current consumer trends. To succeed in your business, you need to deal with real-time data and you can do it by developing relevant strategies.


1. Where can I see my ads?

You can see ads on Google search sites and content sites including Amazon, AOL, etc. The Google network will reach a large number of customers.

2. What reports should I need to analyze to measure the performance of Google ads?

You need to analyze the following APIs-
⦁ Number of Clicks
⦁ Number of Impressions (number of times your ads were displayed)
⦁ Click-through rate (CTR)
⦁ Average Cost per Click
⦁ Average Ad Position
⦁ Number of Conversions (if applicable)
⦁ Cost per Conversion (if applicable)
⦁ Total Cost per Campaign

3. State the difference between Impressions and clicks

An impression occurs when people see your ads, whereas a click occurs when users click on your ad.

4. Is there a chance to set up Google ads only on weekends?

Yes, it’s possible to set up your Google Ads campaigns to spend its budget during a set schedule of days and times. These ads won’t run on the days you have not scheduled.

5. How much does Google ad cost?

The average CPC is 1$ to 2$ for the Google search network and on the Google display network is 1$.

6. How much time should I invest in Google ads?

We recommend you invest at least 30 minutes for reviewing ads results. You can manage ad campaigns to save time.

7. What are the different advertising modules?

CPC (Cost per click): You pay only when users click on ads
CPI (Cost per Impression): you pay based on how many times the ad was shown
Cost per Engagement: you pay when users complete pre-engagement activities like watching videos.

8. Why are my Google ads not working?

Your Google ads may not appear because of payment errors, negative keywords, targeting errors, scheduling errors, or disapproved ads.

9. How can I calculate Google ad campaign cost?

You can use a simple formula to calculate the cost:
Average daily budget: monthly budget / average number of days per month = average daily budget. 

10. How can I reach my Google ad to rank 1?

To get your Google ad at the top, you need to focus on the-
⦁ Your bid
⦁ The quality of your ads and landing page
⦁ The Ad Rank thresholds
⦁ The competitiveness of an auction
⦁ The context of the person’s search
⦁ The expected impact from your ad extensions and other ad formats

11. Are Google ads worth it?

The success of Google ads depends on the customer lifecycle, industry, customer experience, etc. If you are able to utilize it better then you can earn a huge amount.

12. What are the different types of Google ads?

There are 3 types of ads-
⦁ Search network: this is text-based ad, used to search a product or service
⦁ Display network: this is an image or video-based which appears on the website

13. What are the 3 principles of Google ads?

Relevance, results, and control are 3 principles of Google ads.

14. What are the 2 types of bidding?

Cost per click allows two types of bidding automation bidding and manual bidding.

15. What is a good conversion rate?

The good conversion rate irrespective of the industry is 23.5%.

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